| Revision as of 01:18, 18 June 2009 editErik9 (talk | contribs)30,314 editsm Reverted edits by 71.227.205.135 (talk) to last version by 198.200.181.207← Previous edit | Revision as of 02:32, 18 June 2009 edit undoHaeB (talk | contribs)Extended confirmed users, Mass message senders, Pending changes reviewers, Rollbackers54,276 edits rv 00:11, 17 June 2009 - please cite sources and don't misrepresent those which are cited already. one blogger is not "several writers". kept typo correctionNext edit → | ||
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| '''Vector Marketing''' |
'''Vector Marketing''' is the domestic ] arm of ], the ]-based company that manufactures ] products. | ||
| Salespeople, many of them ] students and recent ] graduates<ref name="Wall Street Journal">] Summer Job: Nice Pay, if You Can Cut It - AUGUST 5, 2008</ref> market Cutco products (mainly ]) to customers, especially their friends and family members<ref name="cbc"> ] Episode 10 (Canadian Broadcasting Corporation), January 14, 2002</ref> via one-on-one demonstrations, and (infrequently) through fairs & shows.<ref></ref> Vector builds its force through advertising via newspapers, ], ], ], ], word-of-mouth, posted advertisements, and letters sent to students and recent graduates. Their fliers advertising "student work" are a common sight on many college campuses in the ] and ]. | Salespeople, many of them ] students and recent ] graduates<ref name="Wall Street Journal">] Summer Job: Nice Pay, if You Can Cut It - AUGUST 5, 2008</ref> market Cutco products (mainly ]) to customers, especially their friends and family members<ref name="cbc"> ] Episode 10 (Canadian Broadcasting Corporation), January 14, 2002</ref> via one-on-one demonstrations, and (infrequently) through fairs & shows.<ref></ref> Vector builds its force through advertising via newspapers, ], ], ], ], word-of-mouth, posted advertisements, and letters sent to students and recent graduates. Their fliers advertising "student work" are a common sight on many college campuses in the ] and ]. | ||
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| ==Controversy and criticism== | ==Controversy and criticism== | ||
| Some former employees have accused Vector Marketing of unsavory business practices<ref name="websteruniv">{{cite news |last =Lucchesi|first =Nick|title =Vector Marketing targets unaware college students|work =News |pages =2|language =English|publisher =The Journal|date =2004-02-04|url =http://media.www.webujournal.com/media/storage/paper245/news/2004/02/04/News/Vector.Marketing.Targets.Unaware.College.Students-596811.shtml|accessdate =2008-06-05}}</ref> and it has even been referred to as a "]."<ref>Taking On the Vector Marketing Scam, Humanity Blues: http://www.humanityblues.com/2008/10/taking-on-vector-marketing-scam.html</ref> | |||
| Vector Marketing, in the past, has required sales representatives to make a deposit of $135 + tax in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated).<ref name="websteruniv"/><ref name="statesman">{{cite news|last =Da Costa|first =Polyana|title =Firm misled sales recruits to sell knives, students say|work =Business|language =English|publisher =Statesman Journal|date =2004-08-21|url = http://news.statesmanjournal.com/article.cfm?i=85450|accessdate =2008-06-05}}</ref><ref name="sidelines">{{cite news|last=Anderson|first =Matt|title =Vector policies questionable|work =News|pages =1|language =English|publisher=Sidelines|date =2004-10-06|url=http://media.www.mtsusidelines.com/media/storage/paper202/news/2004/10/06/News/Vector.Policies.Questionable-743131.shtml|accessdate =2008-06-05}}</ref> Since Vector Marketing is a multi-level marketing group, students who work for Vector Marketing are considered independent contractors and are not reimbursed for money they spend on ] used while working or for the time they spend at training sessions.<ref name="carolinian"/><ref name="websteruniv"/> | Vector Marketing, in the past, has required sales representatives to make a deposit of $135 + tax in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated).<ref name="websteruniv"/><ref name="statesman">{{cite news|last =Da Costa|first =Polyana|title =Firm misled sales recruits to sell knives, students say|work =Business|language =English|publisher =Statesman Journal|date =2004-08-21|url = http://news.statesmanjournal.com/article.cfm?i=85450|accessdate =2008-06-05}}</ref><ref name="sidelines">{{cite news|last=Anderson|first =Matt|title =Vector policies questionable|work =News|pages =1|language =English|publisher=Sidelines|date =2004-10-06|url=http://media.www.mtsusidelines.com/media/storage/paper202/news/2004/10/06/News/Vector.Policies.Questionable-743131.shtml|accessdate =2008-06-05}}</ref> Since Vector Marketing is a multi-level marketing group, students who work for Vector Marketing are considered independent contractors and are not reimbursed for money they spend on ] used while working or for the time they spend at training sessions.<ref name="carolinian"/><ref name="websteruniv"/> | ||
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| File:Vector Marketing logo.png | |
| Company type | Private |
|---|---|
| Industry | Marketing |
| Founded | 1981 |
| Headquarters | Olean, New York |
| Revenue | Over $250 million |
| Website | www.vectormarketing.com |
Vector Marketing is the domestic sales arm of Alcas Corporation, the Olean, New York-based company that manufactures Cutco products.
Salespeople, many of them college students and recent high school graduates market Cutco products (mainly kitchen knives) to customers, especially their friends and family members via one-on-one demonstrations, and (infrequently) through fairs & shows. Vector builds its force through advertising via newspapers, Craigslist, direct marketing, MySpace, Facebook, word-of-mouth, posted advertisements, and letters sent to students and recent graduates. Their fliers advertising "student work" are a common sight on many college campuses in the United States and Canada.
Business Model
Vector Marketing is a multi-level marketing group. Commissions start at 10%, increasing in 5%-per-promotion increments up to 30%. Promotions beyond that are monthly bonuses (10%, 15%, and 20%) which are paid only if the sales representative meets a sales threshold for the month. This bonus is then added to the rep's regular commission. Straight commission plus the monthly bonus means that the top representatives are paid at a 50% rate. Promotions are dependent upon career sales, and remain permanently; i.e., one could leave the company and, upon returning, receive the same commission rate. Sales representatives may refer their friends to join as a new sales reps which allows them to gain 2% of their friends' sales, and this bonus comes out of the manager's paycheck, not the friend's paycheck. The company's average order is $250, and the average conversion ratio or closing percentage is 60% meaning that representatives should typically make more on their commissions than from the base pay. The Vector Marketing company provides professional assistance with creating and generating formal appointments with customers.
Vector is a member of the Direct Selling Association and the Better Business Bureau.
A strict promote-from-within policy allows successful individuals an opportunity for advancement. Those that are selected can go through Vector's management training program after beginning at the bottom entry level position of a sales representative. Many Vector offices are managed by recent college graduates, and assistant managers are generally college students, although the company does have a Branch manager program that allows current students to open and run an office while on summer break.
Vector Marketing possesses an advisory board currently consisting of seven college professors: Dr. Joseph Hair (Kennesaw State University), Dr. Victoria Crittenden (Boston College), Dr. David Downey (Purdue University), Dr. Robert Peterson (University of Texas), Dr. Mike Williams (Illinois State University), Dr. Derek Hassay (University of Calgary), and Dr. Deborah MacInnis (University of Southern California). These board members "assist in evaluating and enhancing Vector's sales, training, and promotional programs for college students and sales representatives."
Like many direct selling organizations, the overall success of representatives is based on performance. Representatives receive a presentation booklet during the course of the training seminar, which they are not paid for, which consists of the word for word demonstration that reps are encouraged to follow in order to develop necessary skill-sets within the company.
Controversy and criticism
Some former employees have accused Vector Marketing of unsavory business practices and it has even been referred to as a "scam."
Vector Marketing, in the past, has required sales representatives to make a deposit of $135 + tax in order to procure a set of knives for demonstrations, prompting some to complain about this policy (the deposit is refundable if a representative chooses to quit or the contract is terminated). Since Vector Marketing is a multi-level marketing group, students who work for Vector Marketing are considered independent contractors and are not reimbursed for money they spend on gasoline used while working or for the time they spend at training sessions.
References
- Vector MarketingWall Street Journal Summer Job: Nice Pay, if You Can Cut It - AUGUST 5, 2008
- Vector Marketing Street Cents Episode 10 (Canadian Broadcasting Corporation), January 14, 2002
- Vector Marketing website FAQ for Parents
- ^ Deal, A. Matthew (2006-09-26). "High wages for student work - but beware". Campus News. The Carolinian. p. 1. Retrieved 2008-06-05.
- http://www.vectormarketing.com/Memberships.php
- Vector Marketing website FAQ for Parents
- ^ Lucchesi, Nick (2004-02-04). "Vector Marketing targets unaware college students". News. The Journal. p. 2. Retrieved 2008-06-05.
- Taking On the Vector Marketing Scam, Humanity Blues: http://www.humanityblues.com/2008/10/taking-on-vector-marketing-scam.html
- Da Costa, Polyana (2004-08-21). "Firm misled sales recruits to sell knives, students say". Business. Statesman Journal. Retrieved 2008-06-05.
- Anderson, Matt (2004-10-06). "Vector policies questionable". News. Sidelines. p. 1. Retrieved 2008-06-05.